Price increase for all MERACRYL® methacrylate products due to raw material price surge
Europe’s industry is facing a worsening energy squeeze with power and gas prices hitting fresh records almost daily. Demand for natural gas increases globally due to the economic rebound since countries are fully reopening their economies after having lifted Covid-19 restrictions.
A special combination of factors on supply and demand situation is seen in Europe. Main contributors to the price hike are the last years long and colder-than-average winter causing lower storage levels, the phase out of coal and nuclear power in Germany, a below average year for wind production as well as some reduction in natural gas production in Northern Europe and lower import quantities, primarily from Russia. In addition, demand is currently increasing with the start of autumn/winter heating season.
EU natural gas benchmark contracts have doubled over the last two months. As a result, some energy-intensive industries had shut operations temporarily being not competitive or operating even cash negative. In particular, Ammonia producers are reported to struggle badly due to these latest developments.
Since the production of our methacrylate products is based on natural gas, ammonia and other raw materials for which availability is shortening and cost are soaring, Röhm is forced to react quickly in order to keep our production running.
Therefore, Röhm GmbH announces a price increase for MERACRYL® MMA (methyl methacrylate) and other methacrylate monomer products in Europe with immediate effect.
Sources for market information: Bloomberg, euronews.